Growth Vedanta Resources Opportunities

Channelling growth Vedanta Resources opportunities

I N V E S T O R PRESENTATION - H 1 F Y 2 0 1 9 15 November 2018 Cautionary Statement and Disclaimer

The views expressed here may contain information derived from statement involves risk and uncertainties, and that, although we publicly available sources that have not been independently verified. believe that the assumption on which our forward-looking statements are based are reasonable, any of those assumptions No representation or warranty is made as to the accuracy, could prove to be inaccurate and, as a result, the forward-looking completeness, reasonableness or reliability of this information. Any statement based on those assumptions could be materially forward looking information in this presentation including, without incorrect. limitation, any tables, charts and/or graphs, has been prepared on the basis of a number of assumptions which may prove to be This presentation is not intended, and does not, constitute or form incorrect. This presentation should not be relied upon as a part of any offer, invitation or the solicitation of an offer to recommendation or forecast by Vedanta Resources Limited and purchase, otherwise acquire, subscribe for, sell or otherwise dispose Vedanta Limited and any of their subsidiaries. Past performance of of, any securities in Vedanta Resources Limited and Vedanta Limited Vedanta Resources Limited and Vedanta Limited and any of their and any of their subsidiaries or undertakings or any other invitation subsidiaries cannot be relied upon as a guide to future performance. or inducement to engage in investment activities, nor shall this presentation (or any part of it) nor the fact of its distribution form This presentation contains 'forward-looking statements' – that is, the basis of, or be relied on in connection with, any contract or statements related to future, not past, events. In this context, investment decision. forward-looking statements often address our expected future business and financial performance, and often contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' or 'will.' Forward–looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a environmental, climatic, natural, political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. We caution you that reliance on any forward-looking

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 2 Contents

H1 FY2019 Review Venkat, CEO

Growth Projects and Business Deep Dive Venkat, CEO

Financial Update Arun Kumar, CFO

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 3 H1 FY2019 Review Venkat Chief Executive Officer

Safety Water Management • 10 fatalities in H1 FY19 - principal focus area for CEO and Water risk mitigation measures for water self-sufficiency ExCo to drive ownership by leaders in all businesses • Dariba, HZL - uses treated water from Sewage Environment and Sustainability Treatment plant • HZL - 1st in Environment category, DJSI global rankings for • TSPL - Onsite storage increase metals & mining; Overall ranking improves to #5 from #11 • Commitment to conserve 4 million m3 of water in FY19 • Fly-ash recycling rate at 107% in H1FY19 (90% in FY18) - Greater than 1 million m3 saved as of H1. Community • 32,000+ women part of 2,600+ Vedanta promoted self- help-groups and related programs such as Sakhi at HZL • 3,400+ youths trained in different trades through 11 projects like Tamira Muthukkal at Tuticorin

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 5 H1 FY2019 Business Highlights

Zinc India Zinc International O&G Aluminium

Refined Zn-Pb: 425kt BMM: 29kt Aluminium: 976 kt Production Gross average: 190 kboepd Silver: 10 moz Skorpion: 25kt Alumina: 673 kt

Costs CoP ex. royalty: $1,039/t CoP: $2,393/t RJ blended: $7.2/bbl CoP: $1,978/t

EBITDA $ 727 mn $ 15 mn $ 572 mn $ 242 mn (Margin %) (50%) (9%) (58%) (11%) • Record silver production • Trial production at • Secured 41 exploration • Strong alumina production, and MIC production from Gamsberg commenced in blocks through OALP-1 continued bauxite delivery U/G mines end September • First exploration well in KG from OMC Key • CoP higher y-o-y impacted • Skorpion Pit 112 extension notified as discovery • Costs impacted by volatility developments by high input commodity progressing well • 7 development drilling rigs in import alumina prices prices • CoP impacted by lower in Rajasthan; 32 wells and coal availability volumes and grades drilled till date • Focus on structural cost reduction

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 6 H1 FY2019 Business Highlights (cont’d)

Power Iron Ore and Steel Copper India Copper Zambia Iron Ore Electrosteel

Power sales: 6,830 MU Integrated: 48 kt Production Karnataka: 2.6mt ESL: 527kt Cathodes: 40kt TSPL availability: 93% Custom: 47 kt

Costs TSPL margin: Re1.0/unit IOK CoS: $7.0/t EBITDA/t $112/t CoP: - CoP (ex royalty): 276c/lb

EBITDA $ 117 mn $ 45 mn $ 30 mn1 $ (12) mn $ (41) mn (Margin %) (24%) (22%) (14%) (-2%) (-7%)

• TSPL delivered 93% • Mining operations of • Continued ramp-up • NGT review in • Costs impacted by PAF in H1 FY19 all companies in Goa towards 1.5mtpa progress kwacha depreciation • PLFs of BALCO and remain suspended on capacity • Ongoing community • Equipment state-wide directive, Key Jharsuguda impacted • Q2 exit run-rate of and stakeholder mobilisation, by coal shortages engaging with Govt. 1.3mtpa engagement dewatering and developments for resumption • CSR projects development by • Karnataka sales continuing business partners at impacted by muted notwithstanding the Konkola expected to e-auction sales plant shutdown improve in H2

Note: 1. Vedanta acquired Electrosteel Steels on 4th June 2018, financial numbers are for the period of four months starting from June 2018

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 7 Growth Projects and Business Deep Dive Venkat Chief Executive Officer

RA UG: Mid shaft loading system RA UG full shaft Zawar new MIC production trend, kt commissioned in end Q2 production, 2mtpa mill: Underground SK: Material hoisting from shaft Zawar mill Civil & erection Open pit SK: New 1.5mt mill commissioning commissioning work on track Fumer: Ready

57 46 57 62 232 187 162 178 198 212

Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2 FY19 Q3 FY19 Q4 FY19

Roadmap to Phase – I of 1.35mtpa FY18 FY20 FY21 Rampura Agucha UG (RA) 2.1 4.5 5.0 Sindesar Khurd (SK) 4.5 6.0 6.5 Zawar 2.2 4.5 5.7 Rajpura Dariba 0.9 1.5 2.0 Kayad 1.2 1.2 1.2 Total ore capacity mtpa 10.9 17.7 20.4 MIC capacity mtpa 0.73 1.20 1.35 M2C Automatic Face drill Machine

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 9 Zinc International: Gamsberg starts trial production

250kt Gamsberg project 450-500

) kt • 100% of pre-stripping completed in July ( 250 • Trial production of concentrate commenced in end September 75

• Crusher commissioned; 750kt of ore stockpile built ahead of Production

plant feed FY18 FY19 FY20 Phase 2

Crushed ore stock pile Concentrator Plant Floatation area

Skorpion Pit 112 extension • Over 65% of waste stripping completed, full completion by Q4 FY19 • In H2 higher grades expected, with mine fully ramped up

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 10 Aluminium: Progress on structural reduction in costs

COP, $/t 2,018

1,500 Coal Alumina Bauxite initiatives ramp-up sourcing Other

Q2 FY2019 Target

H1 FY19 Steps Mid term plan Progress

Coal security • 3.2mt additional linkage from Tranche IV auction; Tranche V, VI expected in mid term Coal  49% (Q2 FY19) -> 90% • Coal mining at Chotia (first coal delivered end-October) initiatives • GCV increase with GoI appointed 3rd party sampling

Alumina Captive production • Captive alumina run rate from Lanjigarh expected at c.2mt by year end  ramp-up 1.5-1.6mt (FY19e) -> 4mt • Lanjigarh 4mt (Phase-1) ramp-up - advanced stage of planning

Bauxite Captive alumina CoP  • OMC bauxite - targeting 250kt per month exit run rate in Q3 FY2019 sourcing $358/t (Q2 FY19) - > c. $240/t

• Logistics: Shifting from road to rail Other  • Ongoing improvement in power plant operating parameters • Carbon: Strategic partnership with key suppliers for long term contracts

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 11 Oil & Gas Business Strategy

Exploration • For the first time, a sustainable and large portfolio mix comprising 41 OALP Blocks opportunities across O&G lifecycle Rajasthan KG Offshore Ravva • Acquisition of 41 blocks in OALP establishes Cairn as one of the largest

acreage holder in the country Appraisal

Rajasthan Tight Oil • Capex investment of over $2.5bn being driven through integrated

partnership model with global oil field service companies Development

MBA ASP • Locked in capex contracts at lower oil prices (project IRR > 20% at $40/bbl Tight Oil – ABH Tight Gas – RDG B&A Polymer brent); poised to benefit from recent surge in oil prices

Production • Focus on cutting edge technology enabling world class recovery rates Mangala Infill Liquid handling upgrade

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 12 OALP: Provides 6x jump in acreage in India

Presence

• 41 blocks, mostly in established basins

• Onshore 33 blocks, Offshore 8 blocks

Prospective resource base

• Potential of ~1.4 - 4.2 bn boe of resources

• Blocks closer to existing infrastructure facilitating ease of cost effective monetization

• ~USD 550m work program commitment

• 150+ exploratory wells to be drilled in the next 2-4 years

Unlocking potential

• Revenue sharing model enables flexible techno- commercial construct to execute expeditiously

• Vendor outreach commenced

• Key vendors meet (India and Houston) in Q3FY19

Substantial acreage positions across basins with vast untapped potential

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 13 Exploration: High impact prospects across basins

Onshore Offshore Rajasthan Rajasthan Tight Oil KG Offshore Ravva Exploration Appraisal

4 Fields Work Program Wells: 7-18 Wells: 2 Wells: 9-16 (V&V, MBH, DP & Shakti)

Resources Target, Reserves – 17 mmboe 300-600 190 300 mmboe Resources – 50 mmboe

Capex, $m 60 70 50 185

Partner Schlumberger Schlumberger Schlumberger Under award

Gas discovery in first well; Rig 1 : Q3 FY19 Rig 1 & 2 : Q3FY19 1 Rig program, likely to Execution Second well drilling from Rig 2 : Q4 FY19 Rig 3 : Q4FY19 commence from Q4 FY19 January 2019

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 14 Monetizing resources with best in class technology

All Reserve & Resources Numbers in mmboe Rajasthan Offshore 85 32 200 40 250 28 1,093 51

458 Growth Projects 418 469

Production Existing Liquid B&A MBA Tight Tight RJ EUR Production Existing & Offshore (Till Mar'18) Wells Handling Polymer ASP Oil Gas (Till Mar'18) Growth EUR Mangala Infill

Peak production 150 28 19 108 15 30 50 (kboepd)

• MBA recovery factor ~ 50%, amongst the best globally • Growth capex adds over 350 mmboe at $ 5/boe • RDG gas production pushed ahead of schedule; increase by ~ 90 mmscfd in Q4FY19 through early production facility • Implementing world’s largest ASP project; Wells contract in place, Facilities to be awarded in Q3FY19

World class recovery factors at best in class capex

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 15 Growth Projects: Wells hook up to add volumes

Timeline Capex Project Partner Wells EUR Rigs ($ Million) Jun 18 Sep 18 Dec 18 Mar 19

Mangala Infill Halliburton 100 45 18 1 3 10 2 22 11 45 21

Bhagyam & Aishwariya Halliburton 140 42 40 2 10 2 19 6 33 13 42 23 Polymer

BH-GE MBA ASP Facilities: Under 905 143 – 286 200 3 5 25 6 Award

Tight Oil Schlumberger 170 39 32 3 2 9 2 15 6

Schlumberger, Tight Gas Petrofac, 550 42 85 2 1 3 5 Megha Engg

Liquid L&T, 210 - 10 - Handling Kalpatru

Increasing wells in Rajasthan from 500+ to 900+

Rigs Cumulative count of wells drilled Cumulative count of wells hooked up Facilities execution commenced

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 16 Financial Update Arun Kumar Chief Financial Officer

EBITDA ROCE1 Net Debt

$ 1,710 mn 13.8% $ 10,195 mn

Up 1% y-o-y Robust return Up 13% y-o-y

EBITDA Bridge Copper (115) In $ mn HZL (39) Aluminum 182 ZI (38) Aluminum (263) Brent 198 Aluminium 60 HZL (20) Copper 17 TSPL 53 Others 32

1,694 399 (281) 1,806 1,710 (115) 26 (32) 68 (68) 6 13

Market & Regulatory: $112 mn Operational: $ (109) mn

H1 FY18 LME/ Brent/ Input Currency Regulatory Adj EBITDA Volume COP Marketing Others H1 FY19 Premia commodity & PP inflation Note: 1. ROCE is calculated as EBIT net of tax outflow divided by average capital employed

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 18 Growth Delivering Superior Returns

Growth Capex Profile, $bn

Oil & Gas Zinc Al & Power Copper Optionality Capex 1.8 Lanjigarh 4mt refinery expansion (Phase 1) 0.6 ESL 2.5mt expansion

Towards Zinc India expansion to 0.9 0.3 1.2mt MIC Outstanding capex at Gamsberg 0.8 0.1 0.01 0.02 to be spent in H2 FY19 0.7 0.05 0.6 0.01 0.1 0.3 0.5 Towards $2.5bn capex for 0.2 0.3 0.02 0.05 0.9 ongoing growth projects in 0.5 0.2 0.3 0.6 Rajasthan + Exploration capex 0.3 0.2 0.1 0.1 0.2 FY2016 FY2017 FY2018 H1 FY2019 H2 FY2019e FY2020e FCF pre 2.3 2.2 1.7 0.3 capex, $bn

ROCE 3.4% 12.8% 14.9% 13.8%

Note: ROCE is calculated as EBIT net of tax outflow divided by average capital employed

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 19 Well spread-out maturities support Balance Sheet

Maturity Profile of Term Debt: $12.6 bn (as of 30th September 2018)

Subsidiaries Standalone

3.4 3.2 2.3 1.5 1.3 1.6 Bn 0.8 1.7 0.4

$ $ 0.9 0.3 1.4 1.5 1.9 1.9 0.5 0.4 0.2 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 & Later

Term debt of $12.6 Bn ($6.4 Bn at Standalone and $6.2 Bn at Subsidiaries) Maturity profile excludes working capital and short term borrowing to $2.7 Bn; and preference share of $0.4 Bn

 Continued focus on balance sheet management  Refinanced large part of FY19 maturity in H1 FY19, minimal residual maturities in H2  Maturity extension of standalone debt increased to 3.6 years on rolling basis at Sep 2018 from 2.8 years at Dec 2016  Marginal increase in interest costs despite rising benchmarks  Strong liquidity: Cash and liquid investments of $ 5.5 Bn and undrawn fund based line of credit of $1.1 Bn

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 20 Delivering on our Strategic Priorities

Optimise Capital Augment our Operational Allocation & Maintain Reserves & Excellence Strong Balance Sheet Delivering on Resources base • Volume growth and Preserve our License • Improving cash flows Growth • Well developed to Operate Opportunities asset optimisation • Strict Capital exploration programs • Optimise costs • Operate as a discipline • Develop brownfield • Zinc India R&R of • Adopt digitalisation responsible business ‒ Invest in high IRR growth opportunities 411mt with 25+ years and technology • Continue to focus on projects • Acquisition of of mine life solutions Zero Harm, Zero ‒ Deleveraging the attractive, • Karnataka iron-ore balance sheet • Improved realisations Discharge and Zero complementary R&R of 100mt with Wastage assets, but only for 20 years of mine life • Reduce working value capital • Ensure social • Focus on greenfield inclusion of the and brownfield community to exploration promote inclusive growth

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 21 Appendix

Segment FY19 Production and CoP

Zinc-Lead Integrated > FY18 production ; Silver: 650 - 700 tonnes (21 – 23 moz) Zinc India H2 COP: $950-975/t excluding royalty

Skorpion and BMM: 150kt Zinc Gamsberg: 75kt International COP: ZI (excl Gamsberg) : $1,850 – 1,950, Gamsberg: $800 - $1,000/t

H2 Gross Volume: c. 200-220 kboepd Oil & Gas Opex: sub c. $7/boe

Alumina: 1.5-1.6mt ; Aluminium: c2.0mt Aluminium FY19 COP: $1,950 – 2,000/t

Power TSPL plant availability: 80%

Iron Ore Goa: Nil and Karnataka: 4.5mtpa

Copper - India Cathode Production – 100kt per quarter, once the plant restarts

Integrated production: 100 - 110 kt, Custom production: 100-110 kt Copper - Zambia H2 Integrated C1 cost: 220 – 240 c/lb

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 23 Entity Wise Cash and Debt

Net Debt Summary ($ mn) 30 Sep 2018 31 Mar 2018 30 Sep 2017 Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Debt Cash & LI Net Debt

Vedanta Plc1 6,270 52 6,218 5,877 122 5,755 6,116 15 6,101 KCM 268 4 264 376 1 375 467 9 458 Vedanta Limited 6,169 1,110 5,059 6,259 1,096 5,163 5,850 1,891 3,959 Standalone Cairn India Holdings 401 901 (500) 426 791 (365) 544 934 (391) Limited2 Zinc India - 3,214 (3,214) - 3,411 (3,411) 91 3,058 (2,967) Zinc International - 63 (63) - 96 (96) - 108 (108) BALCO 734 3 731 756 8 748 711 12 699 Talwandi Sabo 1,170 1 1,169 1,330 4 1,326 1,232 45 1,188 Others3 675 144 531 171 77 93 110 31 79 Vedanta Limited 9,149 5,436 3,713 8,941 5,483 3,458 8,538 6,079 2,459 Consolidated Total ($ mn) 15,687 5,492 10,195 15,194 5,606 9,588 15,121 6,103 9,018

Debt numbers at Book Values. Since the table above shows only external debt, it excludes any inter-company loans 1. Includes Investment Companies 2. Cairn India Holdings limited is a 100% subsidiary of Vedanta Limited which holds 50% of the share in the RJ block 3. Others include: CMT, Fujairah Gold, MEL, VGCB, Sesa Resources Ltd, other Iron Ore companies, Vedanta Ltd. Investment companies, TSMHL, ASI and ESL

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 24 Project Capex

Capex3 Spent up to Mar Spent in H1 Unspent as at Capex in Progress Status ($mn) 20185 FY20195 30 Sept 186 Cairn India1 – Mangala Infill, Liquid handling, Bhagyam & 1,991 183 179 1,629 Aishwariya EOR, ASP, Tight Oil & Gas etc Aluminium Sector Line 3: Fully capitalised Line 4: Fully Capitalised Jharsuguda 1.25mtpa smelter 2,920 2,846 50 25 Line 5: Six sections capitalised, two pending Zinc India 1.2mtpa mine expansion Phase-wise by FY2020 1,8934 1,265 147 481 Others 139 63 25 51 Zinc International First ore was fed through the concentrator Gamsberg Mining Project2 400 241 85 73 plant in September 2018 Copper India Tuticorin Smelter 400ktpa Project is under Force Majeure 717 189 6 522 Furnaces to be operational by March 2019 ASI 50 3 18 30 Cold Repair to be completed by next month Capex Flexibility Metals and Mining Under evaluation, subject to bauxite Lanjigarh Refinery (Phase II) – 5.0 mtpa 1,570 836 2 732 availability Skorpion Refinery Currently deferred until Pit 112 extension 156 14 - 142 Zinc India (1.2-1.35mtpa mine expansion) In principle board approval 698 - - 698 Note: 1. Capex approved for Cairn represents Net capex , however Gross Capex is $2.5 bn 2. Capex Approved US$400 Mn excludes Interest during construction 3. Is based on exchange rate at the time of approval 4. Capex approved restated on the basis of historical exchange rate 5. Is based on exchange rate at the time of incurrence 6.Unspent capex represents the difference between total Projected capex and cumulative spend as on 30th September 2018

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 25 Currency and Commodity Sensitivities

Foreign Currency - Impact of a 1 Rs depreciation in FX Rate Currency Increase in EBITDA

INR/USD ~ $35 mn / year

Commodity prices – Impact of a 10% increase in Commodity Prices H1 FY19 H1 FY19 Commodity Average price EBITDA ($mn)

Oil ($/bbl) 75 62

Zinc ($/t) 2,820 94

Aluminium ($/t) 2,156 143

Copper ($/t) 6,483 31

Lead ($/t) 2,244 21

Silver ($/oz) 16 16

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 26 Group Structure

Vedanta Resources Limited

Divisions of Vedanta Limited

79.4% 50.1%  Sesa Iron Ore  Sterlite Copper Konkola  Power (600 MW Jharsuguda) Copper Vedanta Ltd Mines (KCM)  Aluminium (Odisha aluminium and power assets)  Cairn Oil & Gas* Subsidiaries of Vedanta Ltd

64.9% 51% 100% 100% 90%

Zinc Bharat Talwandi Sabo Zinc India International Electrosteels Aluminium Power (HZL) (Skorpion -100% Steel limited (BALCO) (1,980 MW) BMM-74%)

Note: Shareholding as on September 30, 2018 Listed entities Unlisted entities *50% of the share in the RJ Block is held by a subsidiary of Vedanta Ltd

VEDANTA RESOURCES – H1 FY2019 INVESTOR PRESENTATION 27